US President Donald Trump’s recent tariffs on foreign imports are expected to lead to significant price increases for consumer products, with analysts warning that the cost of an iPhone could rise by as much as 30% to 40%. The tariffs, particularly the 54% duty on goods from China, could force Apple to either absorb the extra cost or pass it on to consumers.
Most iPhones are manufactured in China, and if these tariffs stay in place, the entry-level iPhone 16, which originally retailed at $799, could see its price surge to $1,142 — a 43% hike. The premium iPhone 16 Pro Max, priced at $1,599, could jump to nearly $2,300. Analysts from Rosenblatt Securities predict that Apple would need to raise prices on a range of products, including iPads, AirPods, and Apple Watches, in order to offset an estimated $39.5 billion in tariff costs.
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This anticipated increase in prices has already had a noticeable effect on Apple’s stock, which fell by 9.3% on Thursday — marking its worst performance since March 2020. With more than 220 million iPhones sold annually, Apple faces mounting pressure in its key markets, including the United States, China, and Europe.
The future of Apple’s pricing strategy remains uncertain as the company continues to weigh the financial impact of the tariffs.
